Over 47 million resignations were recorded in The United States last 2021; according to the US Bureau of Labor Statistics, an unprecedented mass exit from the workforce triggered by Covid-19 is now widely referred to as the Great Resignation.
To understand the Great Resignation, we must first understand its reasons.
The pandemic has forced many people to confront the shortcomings of their jobs. Working from home has made people realize they don’t need to be in an office to do their work and that they’d rather not commute if they don’t have to.
Work shortages are evident all around us, from groceries and clinics to restaurants and hotels: they can’t find enough new employees to replace those who have quit, causing them to reduce their hours of operation. The Great Resignation has upended the connection between workers and the labor market.
What Does the Great Resignation Mean
In the past, if you wanted a job, you had to go where the jobs were. Companies are starting to come to you nowadays with so many people working remotely. The internet has made it easier than ever for people to find new opportunities, and as a result, they are more likely to leave their current job if they’re unhappy.
A desire for greater work-life balance also drives the Great Resignation. With the pandemic forcing people to spend more time at home with their families, many have realized that they don’t need to sacrifice their personal lives for their careers. And with increasing options for flexible work arrangements, they don’t have to.
Parents have realized they can’t work and care for their children full-time. And many people have just plain had enough of the stress and anxiety that comes with working in 2020. The Great Resignation is a way for people to regain control of their lives and find more fulfilling work.
What Does the Great Resignation Mean for Employers?
The Great Resignation presents a challenge for employers. They must find ways to keep their best employees from leaving while attracting new talent. They will need to offer more flexible work arrangements and better benefits, and they will need to create a more supportive workplace culture and understanding.
The Great Resignation is also likely to lead to a shortage of workers in certain industries. This could lead to higher wages and increased competition for jobs. It could also lead to more automation and technology to replace human workers.
The Great Resignation is a major workforce shift likely to have far-reaching consequences. Employers must adapt to the new reality, and workers must be prepared for a changing labor market.
The Factors Driving the Great Resignation
Undoubtedly, the Covid-19 pandemic has been the main driver of the Great Resignation. The virus has forced people to confront the shortcomings of their jobs, and many have realized that they don’t need to be in an office to do their work. Here are some factors that have led to the Great Resignation:
1. The rise of remote work
The pandemic has accelerated the trend of “working from home.” Companies are now allowing a hybrid set-up where employees can work from home some days and come into the office on others. This has given people more flexibility and control over their work lives, and many have realized they don’t need to be in an office to do their job.
2. The gig economy
The rise of the gig economy has made it easier than ever for people to find short-term or freelance work. This has given people more options for finding a job that fits their lifestyle.
3. The strong job market
The job market has been strong for the past few years, which has given people the confidence to quit their jobs and find new ones. Jobs are posted online, and many open positions are available.
Social media has made it easier for people to connect and share information. This has given people a greater sense of community and makes it easier to find support and advice from others who have gone through similar experiences.
4. The changing nature of work
Work is changing, and this is causing people to reassess their careers. The traditional 9-5 job is becoming less common, and people are looking for more flexible work with a better work-life balance.
5. The rise of AI and automation
Artificial intelligence (AI) and automation are making it easier for companies to do more with less. This leads to job losses in some sectors, but it also creates new opportunities in others.
The Great Resignation is a culmination of all of these factors. The pandemic has forced many people to confront the shortcomings of their jobs, and the strong job market has given them the confidence to quit and find new ones.
The Impact of the Great Resignation on Businesses
The Great Resignation is sure to have a major impact on businesses in the short and long term. In the short term, companies will need to deal with the loss of experienced employees and the increased costs associated with recruiting and training new employees. In the long term, we could see a shift in the types of jobs in demand as people seek out less stressful occupations. We could also see more employers offering flexible working arrangements and more people working from home.
Only time will tell how far-reaching the effects of the Great Resignation will be, but one thing is certain: it’s going to change the workplace as we know it.
If you want to learn more, be sure to read the other blog we have carefully created to help companies improve by finding their next great talent.